Carriage and Insurance Paid To (CIP)
Can be used for any transport mode, or where there is more than one transport mode. The seller is responsible for arranging carriage to the named place, and also for insuring the goods.
As with CPT, delivery of the goods takes place, and risk transfers from seller to buyer, at the point where the goods are taken in charge by a carrier – see delivery.
Things to watch for. Terminal Handling Charges (THC) are charges made by the terminal operator. These charges may or may not be included by the carrier in their freight rates – the buyer should enquire whether the CPT price includes THC, so as to avoid surprises.
The level of insurance cover that the seller is obliged to obtain – there are differences here between Incoterms 2010 and Incoterms 2020. See freight insurance for more on this. If necessary, different levels of cover may be included in the commercial agreement.
